Investors love dividend stocks, especially the high-yield variety, because they offer a significant income stream and have massive total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. Let’s take a closer look at the concept of total return. Imagine you purchase a stock at $20 that offers a 3% dividend. If the stock price rises to $22 within a year, your total return is 13%. This is calculated by adding the 10% increase in stock price to the 3% dividend.

Though devastating, a market crash, or deep correction, is workable if you are in your 40s and making peak money. However, for baby boomers who have enjoyed unprecedented gains over the past 35 years, being overweighted to the stock market now is like picking up nickels in front of a bulldozer, and it could be a fatal kill shot to their retirement savings. Moving out of S&P 500 index funds and concentrating on ultra-safe dividend stocks that can add passive income streams to Social Security or other retirement benefits is essential. We found four safe-haven stocks that make sense for worried growth and income investors now.

Why do we cover safe-haven dividend stocks?

Safe-haven dividend stocks provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort. It is a desirable financial strategy for those seeking to diversify their income streams, achieve economic independence, or protect their wealth.

Chevron

This integrated giant is a safer way for investors looking to position themselves in the energy sector.  Chevron Corp. (NYSE: CVX) engages in integrated energy and chemicals operations worldwide through its subsidiaries. It operates in two segments.

The Upstream segment is involved in the following:

• Exploration, development, production, and transportation of crude oil and natural gas
• Processing, liquefaction, transportation, and regasification associated with liquefied natural gas
• Transportation of crude oil through pipelines
• Transportation, storage, and marketing of natural gas, as well as operating a gas-to-liquids plant

The Downstream segment engages in:

• Refining crude oil into petroleum product
• Marketing crude oil, refined products, and lubricants
• Manufacturing and marketing renewable fuels
• Transporting crude oil and advanced products by pipeline, marine vessel, motor equipment, and rail car
• Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives

Chevron announced in 2023 that it has entered into a definitive agreement with Hess Corp. (NYSE: HES) to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction’s total enterprise value, including debt, is $60 billion.

The Federal Trade Commission approved the deal last fall, and it should be completed by the summer. The merger is still subject to closing conditions, including resolving an arbitration battle with Exxon and China’s CNOOC over assets in Guyana.

Coca-Cola

This company remains a top long-time holding of Warren Buffett. He owns a massive 400 million shares. Coca-Cola Co. (NYSE: KO) is the world’s largest beverage company, offering consumers more than 500 sparkling and still brands.

Led by Coca-Cola, one of the world’s most valuable and recognizable brands, the company’s portfolio features 20 billion-dollar brands, including:

• Diet Coke
• Coca-Cola Light
• Coca-Cola Zero Sugar
• Caffeine-free Diet Coke
• Cherry Coke
• Fanta Orange
• Fanta Zero Orange
• Fanta Zero Sugar
• Fanta Apple
• Sprite
• Sprite Zero Sugar
• Simply Orange
• Simply Apple
• Simply Grapefruit
• Fresca
• Schweppes
• Dasani
• Fuze Tea
• Glacéau Smartwater
• Glacéau Vitaminwater
• Gold Peak
• Ice Dew
• Powerade
• Topo Chico
• Minute Maid

Globally, it is the number one provider of sparkling beverages, ready-to-drink coffees, and juices and juice drinks.

Through the world’s most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of more than 1.9 billion servings a day. It’s also important to remember that the company owns 16.7% of Monster Beverage, which continues to deliver big numbers.

Duke Energy

This is another excellent idea now. It is located in a growing part of the country. Duke Energy Corp. (NYSE: DUK) and its subsidiaries operate as energy companies in the United States.

It operates through two segments:

• Electric Utilities and Infrastructure (EU&I)
• Gas Utilities and Infrastructure (GU&I).

The EU&I segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest.

To develop electricity, Duke Energy uses the following:

• Coal
• Hydroelectric
• Natural gas
• Oil
• Solar and wind sources
• Renewables
• Nuclear fuel

This segment also sells electricity to municipalities, electric cooperative utilities, and load-serving entities.

The GU&I segment distributes natural gas to

• Residential
• Commercial
• Industrial
• Power generation natural gas customers

The segment also invests in pipeline transmission projects, renewable natural gas projects, and natural gas storage facilities.

McDonald’s

The legacy fast-food heavyweight is a solid pick when the economy goes south or north, is among the safest large-cap restaurant ideas. McDonald’s Corp. (NYSE: MCD) operates and franchises McDonald’s restaurants in the United States and internationally. Ninety-five percent of McDonald’s approximately 13,500 U.S. restaurants are owned and used by independent business owners.

The company’s restaurants offer:

• Hamburgers and cheeseburgers
• Chicken sandwiches and nuggets
• Fries
• Salads
• Shakes
• Frozen desserts
• Sundaes
• Soft serve cones
• Bakery items
• Soft drinks
• Coffee
• Muffins
• Sausages
• Biscuit and bagel sandwiches
• Oatmeal
• Hash browns
• Breakfast burritos
• Hotcakes

The 5 Highest-Yielding Monthly Dividend Stocks Deliver Gigantic Passive Income Stream

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